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by criley2 12 days ago
No, and the reason is simple: Usage is bursty and if you don't maximize usage of the hardware you're going to lose on price.

Ok you can host this model once. What if I want a dozen subagents? Ok you can host it 12 times at once. What if we go a whole week only using max 4 at a time? Etc etc. The limits imposed by self-hosting might be bearable for a variety of reasons, but it's going to be more expensive and less convenient/useful.

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The flip side is if you already have the hardware and can utilize it. Also, if this is for security or IP concerns, you largely don't have a choice. The US players are out.

The marginal cost goes down significantly if you have datacenters. Baring in mind that US API pricing is kind of absurd. Even if you, say, only utilize your DC 1/10 of the time... you might still be ahead of API pricing by a wide margin.